Washington pushes farm exports as Delhi weighs concessions
24 October 2025
2 minute learn
US President Donald Trump mentioned this week he spoke with Indian Prime Minister Narendra Modi primarily about commerce, and that Modi had assured him India would restrict its oil purchases from Russia, reported Reuters.
After the US sanctioned Russia’s prime oil producers on Wednesday, Indian refiners – main consumers of low cost Russian oil – mentioned they’re set to sharply reduce imports, probably clearing a key hurdle to a US-India commerce deal.
Why India desires a commerce take care of the USA
India faces steep 50% tariffs on its exports to the US – with half of the duties aimed toward punishing Russian oil purchases – placing stress on key industries together with textiles, jewelry, seafood, leather-based, and engineering items that make use of thousands and thousands of individuals.
Some reviews say the US might reduce tariffs on Indian imports to fifteen–16% from 50%, with the deal prone to hinge on vitality and agriculture.
What concessions is the US urgent India to make?
Corn and soybeans have figured prominently within the negotiations, with the US desirous to promote these two agricultural merchandise to India.
India has more and more turned to corn to spice up ethanol output, however its guidelines bar ethanol produced from imported grains and prohibit genetically modified (GM) meals crops. The USA largely grows GM corn, although some US farmers additionally produce non-GM varieties.
The USA is urgent India to permit corn imports, arguing that ethanol produced from US corn could be used solely for mixing with gasoline and never enter Indian agriculture.
Why does Trump wish to export corn, soybeans and soymeal?
Tit-for-tat tariffs imposed by Washington and Beijing have made US soybeans too costly for consumers in China, which has lengthy been the world’s largest soybean importer.
To assist US soybean farmers saddled with surplus shares, Washington is eager to promote the oilseed to India. The Trump administration can be urgent India – residence to the world’s largest cattle herd – to purchase American soymeal, a protein-rich animal feed.
Is India keen to permit such imports?
New Delhi has balked at recommendations to permit market entry for American grains and dairy, citing the necessity to defend the livelihoods of small farmers. However, India might think about permitting some corn and soymeal imports, commerce and trade sources say.
India’s soybean trade has opposed imports of each American soybeans and soymeal, saying such imports would harm the nation’s oilseed producers and that India already has surplus shares of the animal feed.
Resisting corn imports, ethanol producers say any shipments of the grain would disrupt your entire ethanol provide chain, particularly as India’s ethanol manufacturing capability exceeds consumption.
With meeting elections nearing within the jap state of Bihar, an enormous producer of corn, US imports might anger farmers, an influential voting bloc.
